Best places to invest for a rental property

265 Replies

Columbus, Ohio is a great market to invest in. I've been investing and helping clients here for years and everything keeps growing. The most important thing is to find a local team wherever you identify as your market to invest in.

@Anthony Holloway You are very smart to want to start with at least a 2-unit property, which is exactly how I got started before moving into larger apartment buildings. 

Many people have suggested different cities but I think you should think about your investment goals and how that fits into your future plans. 

Are you planning to move to a specific part of the country in the nearest future? Are you planning on becoming an active investor yourself in the future? These are just a few questions to consider before jumping in.

I think we're all biased towards the markets we live in, work in or invest in. That said, greater Cincinnati is also a solid market to consider. Despite appreciation (like we've seen everywhere lately) there are still affordable deals to be had and Cincinnati has a solid renter base. Northern Kentucky (which is actually where Cincinnati international airport is located) is currently seeing a lot of growth due to Amazon's 99-year lease and build up of a distribution center on airport property. Things are definitely on fire here.
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That's right. Everbody is biased because they don't have information nationwide. 

You get CF and appreciation in OH,KY,IN,TN,KS,AL just like you said. They're all having the same profit profile. But in case of dollar efficiency, Ohio is very interesting.

The key is buying it right.

Obviously I am biased and think Charlotte is a great option, but the where is the least important part.  Honestly you just need to find a place where you can build a good team, you can make many in almost any market with the right team.  Wish you the best

Hi Anthony, we've had good luck in Maryland.  Best public schools in the country, lowest insurance rates (because Maryland has low risk for blizzards/hurricanes/earthquakes/tornadoes)) and lots of military bases and permanent federal installations like NASA, NIH, FDA, Census, SS Administration, etc. that make it recession resistant.  Steer clear of Baltimore City and the rest of the state has great cash flow.

@Ola Dantis yes, I think a 2 unit is the right size as my first investment. I’m originally from NYC and I know live in LA. I work in construction and my plan is to become a full time investor, investing in different states for rentals

Originally posted by @Kenneth Williams :

Hey man, I know that I'm biased because I live in Memphis. But Memphis is a good start because of the cash flow.

Totally agree with Kenneth- Memphis is notoriously a good place to invest for cash flow. Having someone that knows their way around the city in your corner helps too. Sounds like Kenneth is your guy.

 

@Anthony Holloway As you can tell from this thread, every agent who stands to gain a commission by you investing in their market has recommended (at least some of them have stated that they are biased). 

You need to sit down and determine your long-term goals, and what real estate investing strategy best fits into those. If buy and hold rentals are still the right answer, then you need to determine if you prefer to play the cash flow, or appreciation game. Also, you need to set some specific criteria for your investment, and market. Then I would suggest finding a market you're either a) familiar with, b) know somebody (personally) who invests there, or c) would like an excuse to travel too.